first ceasefire in over a year of violence between syrian forces and armed rebels comes into force following a u.n. jet by meanwhile russia says the security council could approve sending an observer mission to syria as soon as friday. the president says no pressure will make this country give up its rights to nuclear energy and the statement comes ahead of this weekend's talks on the issue with major world powers in turkey. and as the world marks the fifty first anniversary of the first manned space flight russian scientists on bail ambitious plans to set foot permanently on the moon. and now

it's time to delve deep into the world to find its most lauren lister's capital account. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. your headlines for april eleventh two thousand and twelve here we go again with debt troubles brewing in spain a european central banker is triggering talk of an easy b. intervention so now people are speculating about another bond purchase program to lower spain's borrowing costs come on how much more money will be conjured out of thin air pumped into europe that's cool to make things look stable we'll talk about the cost on that note the fed's beige book came out today and people are looking at the data for any signs of weakness it could trigger a renewed hue we three conversation we'll talk about the perpetual nonstop debate where everything economic seems to rest on whether there will or will not be more money printing how long can this nightmare continue and is bank of america doing

itself is this how big are too big to fail banks have gone that business what we're seeing we'll talk about this latest apparent absurdity of the foreclosure mess out there continues let's get to today's council announced. central banks in the spotlight as the yield for spain's ten year bonds have recently been back on the rise reaching the terrain that pushed ireland portugal and greece to seek bailouts ok how shocking the debt crisis is a problem again and you could throw money at a problem but it just goes to show that doesn't make it go away but that does not stop central bankers from trying and comments made by one have people speculating

about the e.c.b. getting involved and purchasing bonds so the european central bank executive board member ben said spanish market conditions are not justified and talked about the tools the e.c.b. still has a place in its arsenal to buy euro zone dedicated securities market program the s. and p. is what he referred to today and in the u.s. eyes are on the federal reserve as the fed beige book came out today and reports that people were looking at that for any signs of weakness if you could point to calls for q e three it found the u.s. economy did keep growing moderately late winter but rising energy prices are worrying consumers we also heard the atlanta fed president today say the bar is still very high for more easing but i want to point out some interesting trends when it comes to the fed's intervention that may help us figure out when the fed acts ok let's take a look at this chart so this starts out before the whole crisis really began back in two thousand and seven and you can see we have the s. and p.

five hundred is that blue line the ten year treasury yield is the green the fed funds rate is the red so you see bear stearns hedge funds collapsed in the fed dropped interest rates but look the market was still stalling and so then you saw the collapse of bear stearns and you saw liquidity programs such as tell it came in the market still falling there then the lehman brothers bankruptcy september of two thousand and eight the interest rates to zero and we've seen him stay there as we all know so well but look the market still going down so look what happens quantitative easing that is finally what gives the market a boost and look the stock market goes up until it gets worried that q.e. is running out. starts to fall it falls and to look ben bernanke he makes a speech in jackson hole hinting at q.e. two then everybody knows that that is coming or bracing for it at least market starts to go up keeps going up as q e two in fact is announced and does in fact happen and it continues to go a lot until that and then it drops again but lo and behold it got announces

operation twist another effort and there you have a market continues to rise so this could make out of bed with the helm is trying to prop up the stock market ok is that the goal it makes you wonder who the bed is really serving and while we're on the intentions of government officials president obama continued on his buffett rule blitzkrieg today take a look for the. from warren buffett pays a lower tax rate than a circle jerk because he's the one who's been forming that out and saying we should fix the executives who are with me here and they just behind me but in the audience agree with. he kept that in there his friend his buddy warren buffett we've talked about the crony capitalism before and those executives what do you bring them back with fifteen grand a plate fundraiser last night is this the perk they got for their donation the buffett rule would really reduce the deficit that's the question but people are

finding that it's not so then what is it really all about bluebottle is here to talk about all of this with us he's chairman of the ludwig von nice this institute author of the left the right and something we cannot ever leave out these days the state lou thank you so much for being on the show mr baucus always nice to see you hi lauren so just to get started you know we've actually backed off the fed for a little bit just as we've been focusing on some other frauds going on in the financial system more broadly but you've come back and it's still the same thing going on where the fat appears to be planning and deciding what's going on in the economy even when it is an end by that i mean here even today you see everybody going ok what's the fed going to do is q e three coming is it not and planning and investing and betting on what the fed will or will not do and when it will happen so does this just go to show mr rockwell there were a kind of a post-capitalist days where policymakers are calling all the shots these days well sure i mean this is this is not a fruit column is it so many people the nineteenth century or most of the twentieth

century economists and others would not talk about this present american economy as a for your comment and the fed is the manipulator there's even something that they call the plunge protection team composed of people from the fed and the treasury and other government agencies so you can prevent the stock market from ever going down and that as you point out is one of the key mandates in the real mandates not the phony mandates of the central bank to keep the stock market up and will there be a q.e. another q.e. there will be if they feel the need they needed to keep the stock market up or for that matter the european stock markets because we know the fed has already poor a huge amount of money to to. bailout the big banks in europe and to bail out the e.u. and the and the euro so is this going to happen probably there's going to be much more money going there the e.c.b. is going to be printing like mad they've already put we were in a never seen in the history of the human race this kind of monetary expansion how

it ends i'm afraid we know it doesn't end happily in the meantime i'd just all kinds of lies coming out of the fed really we can't believe anything the beige book says brother ok i do want to hold you right there kits because i want to break here's what you said the page numbers we can believe the page not ok the page number that the only takeaway from the beige book is an interesting point you make that we should be listening to the fed official mandate about inflation or unemployment or whatever they're saying there but just look at what the stock market's doing maybe that's going to be ticking but i want to get to what you were talking about with europe because we have seen europe really follow suit with kind of the federal reserve game plans as far as injecting liquidity into the economy and we saw the e.c.b. do that pumping more than a trillion dollars of liquidity into europe and lo and behold mr rockwell it never works we said see the debt crisis being an issue again now with spain so people are freaking out again and you have the european central bank officials saying hey you know we still have tools in our arsenal we could still borrow more still buy more

eurozone debt so this continues it seems like it's going to continue and receive you said the anger isn't pretty i want to know what is banking even look like first of all none of this is being done for the average jose right i mean it's great done for the big banks the big investment houses goldman sachs in effect appointed the the new prime minister of italy and of greece these both the guys came out of goldman sachs so it's these big international banking institutions that are calling the shots and because it's with the governments and you know it's probably a very desperate situation we're going to end up with we're going to end up with much more inflation prices going up at a tremendous rate and then they're probably going to put on. price controls don't need wage controls because nobody's wages are going up but they will put on price controls and that's like the worst of all possible worlds and then combined with what only weimar germany did where you have the central banks directly monetizing the government debt government prints up the debt central bank buys that quote

unquote and does it with newly printed money and that that's really that's the road to perdition from an economic standpoint so you think this island and hyperinflation well either on hyperinflation or disguised you know suppressed inflation but via price controls authoritarian states always put on price controls when political troubles are being caused by rising prices and it was they blame the business people they blame workers they bring the consumers blame anybody but themselves so i think probably i'm sort of say i think actually suppressed inflation with price controls which means that just total economic disaster far more poverty declining standards of living for everybody except those at the very top the warren buffets will they'll do fine in case you're worried about where warren is getting his next pizza but the rest of us are going to be massively harmed we already have been around would care to american working families income hasn't gone up in real terms since richard nixon goes the goal went in

a very long bad period and speaking of richard nixon back in the seventy's we thought of wage and price controls that are there any takeaways there that we need to be reckoned well they were the republicans just for today an example don't hesitate to put on those kinds of patella tarion telecare in controls and nixon did it just by executive order he didn't even bother to ask the congress probably the congress would have gone along but he didn't even bother you just act like a dictator just like obama and george w. bush and all the rest of the stuff they just issued the edict and say let it be so it's like a pharaoh or or an absolute monarch so that's the way they would do it we face possible capital controls. all kinds and all kinds of other dramatically. worse if we can imagine that regulations the controls on those that exist at the present time that will of poverty for americans impoverished regular people in europe regular americans here benefit the government's benefits the big banks benefit the oligarchs like warren buffett well you mentioned nixon and that you compared him to

current president so is this any worth or is this just then a same thing the same way that's always been well it's worse than in civil liberties terms that would mean they were the average american is far less privacy for example than under nixon but nixon was you know a paving stone on this path and a very important one he did a lot of tremendous expansion of the executive branch which was always the most danger to a society more so than the legislature or the courts so nixon was it was because gore but things were better or better under nixon in terms of civil liberties because the government had to grab as much power as they have today so it gets you know is as a friend of mine once said sooner or later every president make sure to stay out there for his predecessor interesting thought this isn't doing on with that that we do see another similarity between the us and europe and not the impact of housing real estate loans bad ones are crushing spanish banks right now we obviously saw the toll of that in the united states but lo and behold now there are reports

coming back out that some banks are tiptoeing back into stub prime lending again j.p. morgan and b.c. being a couple that were named in a report i saw today does this show that the system is still incapable of adequately pricing risk because the fed continues to take interest rates and manipulate the money supply so it's all just phony baloney i mean the whole housing market because of the fannie and freddie and the fed itself m g may and all these various agencies that. are involved either peripherally or directly in the real estate market because. because a horrendous amount of trouble market prices are not clear all these guys used to tell us about they want to. double housing when all it turns out affordable housing is a terrible danger but if those prices are well no we don't we need to let the market clear we need to let the prices fall but more and more people could buy houses then people who are getting these subprime subsidies would be able to maybe actually buy a house or a condo. in

a market condition but they fear that and they want to believe that some of prosperity comes out of the or nonsensical idea that housing should go up in value every year about what else is hell are happening in the economy your house should be worth more well you know that only happened because of immense government intervention and i think there is we are going to see some revival in housing just because they've created a zellot was born so i mean if you would. call this new implosion so some things are going to go up they're keeping the stock market up for the most part so they are there so housing in some areas is going to go up but i don't think it's the long term playing because i think when things blow up housing is going to go right back down and really that's a good thing even though all the manipulation is horrible lot of people got hurt tracked craft and true prepon all the so so it's better for the economy as a whole and social justice without matter that housing prices fall let's let the chips fall where they may let so some strange reason i don't actually have some

natural recovery here mr rockwell i want to keep you on we just have to go to a quick break when we come back i want to talk about buffett you drop his name a couple times i have some follow up there i will have more with new rockwell author and chairman of the ludwig bunny institute and still ahead student loan debt is hit the trillion dollar mark and instead of treading water to keep up with the debts california is like the universe need to dive into very huge you're deep pockets instead we'll give you our three cents on their proposal but first your closing market.

line in the motion would be soon which brightened if you knew no bounds known from phones to impressions. from stunts on t.v. dot com. world. science technology innovation all the moves developments from around russia we've got the future covered. welcome back switching gears of u.s. budget deficit president obama is out pushing the buffett rule we've seen a few days in a row now really make that case it's his plan for

a thirty percent minimum tax on millionaires sounds compelling to people who are maybe worried about people paying their fair share everybody getting kind of the same level playing field the turns out it won't actually reduce the deficit much just forty six point seven billion dollars in revenues it would raise over the next decade ok to us runs more than a trillion dollar a year budget deficit so even when obama excuse me even though obama in his state of the union speech did spin this as a deficit reducing now even the white house admits it was never the plan to bring down the deficit and get the debt under control and now they're emphasizing fairness so what is this really about we've spoken before about warren buffett possible crony capitalist goals but what is really kind of the bigger picture here lou rockwell i want to bring him back any term in the ludvig bunny's institute and author of the left right in the states and the toronto before the break you were

bringing up warren buffett a couple times i want to ask it cars the buffett rule overall and the fact that it won't really bring down the deficit or reduce the u.s. debt but it's really about politics well first of all. we always think of taxation as being a shorthand for wealth structure so if you want more wealth destruction in the economy i would say no but here's what the buffett rule is all about it benefits the all the gore people like warren buffett but crushing the rising young entrepreneur is that is the main purpose of the poker rule it's a class rule not against the busses but by the busses against people who would be there be their competitors all the guards tend to hate and fear anybody rising up they want to prevent it so it's that and then of course there's also way is a logical role for the obama administration in saying that we're fair we're going to tax those who are. people who are producing goods and services to society and benefiting the human race we're going to we're going to kick him in the teeth so

there are people who like that so that helps a certain of alabama's base but i believe the real reason is again it's a pro oligarchy rule it's a terrible thing it's an evil thing but you know warren buffett was pretty much gets what he wants he's a very important guy i remember when nine eleven when george bush was falling all around the country by the air force and they put him in a secret multi story underground bunker into brasco with his the safest place to keep them and he gets down there who's the one other guy in the bunker warren buffett so warren buffett a very significant figure in the american state in the american fascist economy and unfortunately he tends to get what he wants so i guess obama's going to keep pushing this so let me be clear you think that warren buffett noted beijing is to watch competition from people yes there are. going profits on the road and how did this accomplish that well because it taxes you doesn't tax doesn't go after the warren buffett taxes which is the capital gains tax and i'm not for doing that but

of course it doesn't go after that it goes after in the income tax of people making a million dollars or the people who are making a million dollars a year are either very successful professionals but for the most part they're young businesspeople who are building their businesses starting to create something that might actually in the free market become a massive enterprise and of great benefit they want to crush if you want to crush that you want to stop that so the people he's targeting not so much the professionals and the young entrepreneur us who are you want to prevent from becoming big entrepreneurs and therefore. affecting his power and it's not only as good as economic power which of course he has a lot of economic or some of which is legitimate but it's his political power when he calls up and you know he has one of very few people have the president's direct phone and call the president any time day or night. pretty much give him instructions because it doesn't so it phrased that way but that's in effect what it is so he you know he wants that's that's what this is so way to help obama you

things which would of course help him help warren buffet in the next administration i thought obama got reelected by promoting envy of the great evil of the city but it also helps warren buffett again by crushing his contributors and he is a potential competitors and you wouldn't think these guys these guys care about what they do they hate and fear competition again especially coming from people rising up in new areas new industries new kinds of businesses the government is not already controlling and crushing and threatening their position just from a from a status and from an economic standpoint some of these muslim states before we go we just have a minute but it got real good and proposing for higher taxes also on capital gains and investment income like the super rich make would that change your mind about things or you know because i think people's i think people's capital gains or i think all these taxes are far too high on the good for tomorrow and we want people to invest we want people to make capital gains so no that wouldn't do it at all i

would just like to see warren buffett cut loose from the from the safety net of the state and let him go on his own and if you can make money legitimately more power to him but not not to do it at the expense of the rest of the people through the government punishing us well mr i appreciate your insight there ever going to leave it there for today that was live rock author and chairman of ludwig on the think it's you. all right let's wrap it up with loose change i have dimitri and shannon here and we are revisiting a story that now is relevant again we told you a while back about a whistleblower who was awarded eighteen million dollars for discovering robo

signing on foreclosures including her own and there is a reason bank should be aware take a look. what the bank may not have known. is a lawyer and fraud investigator with a specialty in forged documents she splits time she's at it again saying that bank of america has sued itself for foreclosure eleven times since late march in the march twenty ninth filing bank of america is seeking to foreclose on a condominium and named the condo owner and bank of america as defendants in this suit now there was. some commentary on the blog that this was on the huffington post saying this is proper because big of america was the second mortgage issuer so they should be included in the suit to me though this just shows the absurdity of the foreclosure crisis and how big banks have gotten that literally they're naming themselves in suit because they have issued so many loans in so many

different ways but some of this isn't like some sort of accounting fraud again because the brakes are so good clever i've been i've been waiting for this because this talking with the lawyers or because they're going to be so many words in a system they were that of suing each other so now i think this is potentially to finish cross an opportunity because the bankers start suing itself going out. and eating into its own profits and maybe this could be a way to kind of collapse the way stars collapse in the black holes who collapse into themselves and we could be spared of all of the indignities that come with this discussing banking sector well and they also say that historically empires actually crumble from within you know they're having their imperial stretch but then they don't take care of people at home and start to crumble from within this is the same kind of things maybe we could see the banks the banking empires the too big to fail guys start to crumble from within ok let's move on yet another hot button issue student loan debt we've talked about it a bunch here's ron paul breaking down why he doesn't think that government loans

that sort of thing have worked. but the policy of student loans is a total failure i mean a trillion dollars of. taxpayer funded big yacht care education and cost ahead skyrocket because of inflation. well students in california have a proposal to deal with this rather than taking on debt they want to equity in their future earnings so according to the economist public universities in california will take five percent of the student salary the first twenty years following graduation that's very incomes between thirty thousand and two hundred thousand dollars so students who make more money after graduation will subsidize lower earning peers i think this is pretty innovative but it is more financial whiz agree and it's quite frankly stupid part of why you would tell you because with that at least in the default you can lose the fault but this is this is just another bankruptcy was due to. well ok you're supposed to be able to i mean this is

like some new thing but that's the catch the student loan gets i don't believe you can or here's my point my point is that this actually was the point where by the very nature of the of the instrument being used you can have the fault because they're taking ownership of you all of your future income stream you're actually literally owning you through equity so this is actually like the next step of feudalism it's not just owning you through that and so i actually own you and then the other and i disagree it's actually more merit based because it's based on the actual job that that's cool has allowed you to get and then you start getting paid on your investment in that student so i think it would incentivize school sometimes to get students training that results in jobs or this is crazy we're arguing old fashioned i'm going to play a little bit where you're going to prices are too high what they take us in their own lives in the canal and this is the real world we will not going to happen here but they will go to charge such high fees because of student loans yes because you have this gigantic amount of right that's giving better giving students loans but for degrees because we're real low because you are clueless and i fear you

ideologically but we're dealing with what is reality right now and as far as the current reality we live in this idea sound a little more is there a bit better then then getting into giant debt what you think i'm not too sure is that universities are going to make it. on of money off of it when their students who are in the more liberal arts majors go out in the real world they're not really making as much money then the university maybe close down that apartment well going to say if there's a home all but one is going to have a lot of money with a few students public ok all right all you guys are missing the prism of the revenue restructure was true this is a scam ok this is absurd we deserve to have normal prices because compared to normal prices mimic a talk about i killed of course i.p.o. stock usually it's free. and then students can pay dividends to their parents if they did well raising them and they see a benefit and he's exploring last day we lost more of. it's only have time for our

thanks for tuning in don't forget to follow me on twitter lauren lyster it will be back on the show at you tube dot com slash capital account for everyone here thanks for watching and have a band's tactics.